the maccas Debt Free Diary - 20K to pay in 18 months

hypno06

Sounds like a fantastic day, and I wouldn't worry too much about the spending - as you say, these things don't come along every day do they?

Glad you enjoyed it.

Now back on the DFW trail.....:D

Verbatim

Glad the whole family enjoyed your OH's Graduation Day.

You're doing so well, the debt is falling away.

themaccas

OK I think we need a plan. We got a letter from out letting agent to let us know that our tennants are moving out in 3 weeks. We have been sort of expecting it but kinda hoping they would stay on unitl the new year. Our LA have told us that they don't expect to have any problems letting it back out in the next couple of months, except......................We are not really sure that is what we want. So we need to make a decision really about whether to -
Move back in
Let it back out
Sell it.
Either way the house needs to be redecorated and the window framed and outside doors repainted. Some of the carpets need to be replaced and maybe a new bathroom suite. The outside painting we have had 3 quotes all around £950, the redecoration we can do so around £50 for that, carpets around £300-£500 and a new bathroom suite and tiling ....at a guess £700. Fortunately we have the savings maturing next month of £3300 so we will have the money to get this done.
Anyhow...options.........
Move back in - Not really the best option when OH could be posted in 6 months and we could be on the move again and have to go through the letting process again anyhow.
Let it out - could do, I always stress about it but it gives us a good income after tax which has helped with our debt repayments and we have stability somewhere
Sell it - We really like this option. We could clear our debts and save the equity (140K) and when we get posted, buy another house or just hang on to the money in savings and just keep adding to it until OH leaves the forces then buy again. The down side is that we are off the property ladder and prices could go crazy again.

We will keep thinking about it until the tennants leave I think, I actually feel quite excited about (maybe) selling it!

Verbatim

I'm sure I'll be shot down by some but...
I'd keep it and let again because
1) You retain a solid asset come what may and remain on the housing ladder
2) It provides a good income and will continue to do so
3) If you sell and repay debts you have significantly lowered your capital asset
4) Are you sure you will be able to save enough to make up what you lose in capital bearing in mind the way property prices may rise
5) Will there be a temptation to think that you're debt free, with money in the bank so no reason not to have that holiday/short break/spending spree
6) You will have a home for your family when your OH leaves the forces

In other words it's a big risk if you sell.

On the other hand what is the downside of not selling?
1) You use some or most of your saving fund ......but may well recoup this over a year in higher rental income
2) It will take you a marginally longer time to become df .... but you will still have your major capital asset intact and insurance against rising prices

Hope this doesn't sound insensitive.

themaccas

Not at all V, OH and I have been talking about this over the last couple of days non-stop. OH would totally agree with everything you have written and he is reluctant to get rid of our family home. I am having a major panic really at the thought of not having the stability our house gives us. However we would love to move back into our own home whether it is this one or another one although I would find it very difficult to move back into something that we have been using as a letting property.

So....what we might do is put it up for sale and rental at the same time and whatever happens first we'll stick to. Then, if we sell it we will buy something else when OH gets posted at the beginning of next year.

Verbatim

Well good luck whatever you do.

If moving back seems difficult because it's been let perhaps redecoration plus any project you've put off over the years would be a way back in?

auntie_brenda

Just a quick point - have you calculated what Capital Gains Tax would be due? This might sway your decision! Hopefully there will be none (sorry, haven't read all 6 million posts so don't know how long you've been letitng ), but best to have all info available while you're deciding.
Good dilemma to have though :T :T :T !!!!!!

bratz_2

Hiya

I've just read through your thread and have to say what an inspiration you are :T . OH and I have just faced up to the fact that we owe loads (approx £27,000 :eek: ) and were at a loss where to start but reading through your diary I know we can do it. I know it will be a long haul and we will have to make sacrifices like selling our car which to be honest is really only used at weekends because I bus it to work (parking is a nightmare!), so it really is a luxury we don't need and I reckon will bring our overall debt down by around £5k! So this weekend will be spent cleaning the car and advertising it, as cheaply as possible of course, and doing some serious budgeting.

Anyway sorry for hijacking your thread but just wanted to say that you'd made me see the light at the end of the tunnel already :j .

Angela

themaccas

I've totally been losing the plot with money recently so much so I have got to the stage where I daren't look at our bank account. I am so fed up with paying off debt and questioning every little payment. We have been doing it still but last week OH and I went to a factory shopping village and ended up spending £28 on lunch then I spent £45 on a jacket, £50 in M&S and OH bought a top for £40. So we spent OH's expenses that should have gone on paying the O/D. I also cancelled a couple of extra shifts because I feel so knackered so now I am wondering how I am going to be able to afford to get my hair done!!! Other than that our petrol/diesel bills have been going crazy - have spent £180 in 2 weeks with all the driving we have been doing and that is with essential travelling. That has got to change! I will look at our accounts later today when I pluck up courage!!!

dreams_R_free

Just a temporary blip, themaccas. Please don't get discouraged. Your efforts so far have been an inspiration to a lot more DFWs than me! Sending you lots of virtual hugs.

I sometimes think it's necessary to 'treat' yourself very occasionally. All the relentless scrimping and saving gets you down in the end, there just has to be a bit of relief every now and then. It's like being on a permanent diet(been there,got the T-shirt although it keeps feeling too tight:o) and you eventually get so sick of it that one bad-food day turns into a complete packing-in of the whole diet and going back to scoffing for England:eek:

So just see this as a little 'holiday' from your scrimping and go back to it refreshed and with a vengeance:beer: .

Good Luck to you.
Imp